PenFed CD Rates (October 2026): Up to 3.50% APY on Certificates
Written & reviewed by Hans Goldstein, EA, independent licensed insurance producer · CA license 4273294 · NPN 20602398Admitted to practice before the IRS
Rates checked on penfed.org on October 13, 2026 (PenFed dates them October 9, 2026) · Reviewed
Short answer
PenFed's top certificate (CD) rate is 3.50% APY on 5 and 7-year Money Market Certificates, with a $1,000 minimum (APY accurate as of October 9, 2026). The 2 to 4-year terms pay 3.40%, 1 year to 18 months 3.20% and 6 months 2.70%. The 5-year IRA certificate pays 3.40%. That trails Navy Federal (4.05% to 4.15% on 12 months to 3 years, October 3, 2026) and the best national CDs.
CD vs MYGA, after tax
What $100,000 earns in 5 years: CD vs MYGA, after tax
Rates used: CD 3.50%, PenFed 5-year certificate (penfed.org, rates dated October 9, 2026); change it to the rate you are offered. MYGA 5.95%, the best A-rated rate we track as of October 13, 2026: Delaware Life Pinnacle Plus 5-year (AM Best A-, negative outlook, 7/31/2026), $100,000 and up, effective October 6, 2026 (Delaware Life rate sheet).
| CD, interest taxed every year | $114,416 |
|---|---|
| MYGA, tax-deferred, before tax | $133,507 |
| MYGA after paying tax on all the interest at withdrawal | $126,136 |
| Tax deferral alone adds about | $674 |
| MYGA ahead of the CD, after tax | $11,720 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge. In an IRA both grow tax-deferred, so the edge there is the rate alone. Bank and credit union deposits are FDIC or NCUA insured up to the limits; a MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
PenFed certificate rates by term
| PenFed certificate term | Money Market Certificate APY | IRA Certificate APY |
|---|---|---|
| 6 months | 2.70% | n/a |
| 1 year | 3.20% | see penfed.org |
| 15 months | 3.20% | n/a |
| 18 months | 3.20% | n/a |
| 2 years | 3.40% | see penfed.org |
| 3 years | 3.40% | see penfed.org |
| 4 years | 3.40% | see penfed.org |
| 5 years | 3.50% | 3.40% |
| 7 years | 3.50% | see penfed.org |
How PenFed compares
| Option | Term | APY | As of |
|---|---|---|---|
| PenFed Money Market Certificate | 5 years | 3.50% | 10/09/2026 |
| Navy Federal certificate ($1K / $100K+) | 5 years | 3.85% / 3.90% | 10/03/2026 |
| Navy Federal certificate ($1K / $100K+) | 18 months | 4.10% / 4.15% | 10/03/2026 |
| Best nationally available 5-year CDs | 5 years | 4.35%-4.50% | 09/25/2026 |
| A-rated-or-better 5-year MYGAs | 5 years | ~5.80%-6.00% | 09/24/2026 |
- Nearly flat curve: 2 to 4 years pay 3.40% and 5 and 7 years 3.50% (October 9, 2026), so locking past 2 years adds only 0.10 point.
- The 5-year IRA certificate pays 0.10 point less than the regular 5-year (3.40% vs 3.50%, October 9, 2026), but allow penalty-free partial withdrawals after 59½, including RMDs.
- ACH-funded certificates cannot be withdrawn in the first 60 days; early redemption requests must be in writing.
- NCUA insured to $250,000 per member, per ownership category, the same limit as FDIC.
Quick answers (October 2026)
What are PenFed CD rates today?
PenFed lists Money Market Certificates at 3.50% APY for 5 and 7 years, 3.40% for 2 to 4 years, 3.20% for 1 year to 18 months and 2.70% for 6 months, APY accurate as of October 9, 2026.
What is the PenFed certificate minimum?
$1,000 to open a certificate.
What do PenFed IRA certificates pay?
PenFed shows 3.40% APY on a 5-year IRA Certificate, accurate as of October 9, 2026.
What is the penalty for cashing a PenFed certificate early?
PenFed's disclosure says you forfeit all dividends if you redeem in the first year. After year one the penalty is 30% of what you would have earned by holding to maturity, capped at dividends earned.
Related: PenFed 5-year CD rate · PenFed vs Navy Federal CDs · Navy Federal CD rates · best CD rates 2026 · Today's MYGA rates
Rates expire like milk.
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PenFed 5-year certificate vs. a 5-year MYGA: $250,000 math
| $250,000 for 5 years | PenFed 5-year certificate at 3.50% | 5-yr MYGA at 5.80% |
|---|---|---|
| Rate | 3.50% APY, fixed | 5.80%, fixed for the term |
| Tax on earnings | Every year | Deferred until withdrawn |
| Value after 5 years, after 24% federal tax | ~$285,100 | ~$311,900 (tax paid at the end) |
| Protection | NCUA, $250K per ownership category | Insurer claims-paying ability + state guaranty association (limits vary by state) |
| Getting out early | Dividend penalty | Surrender charge above the free-withdrawal amount; IRS 10% penalty before 59½ |
The MYGA comes out about $26,800 ahead after federal tax (24% bracket, state tax ignored). For money you may need within two years, or money that has to stay federally insured, a MYGA is the wrong tool. MYGA benchmark: carriers rated A or better topped out around 5.80% to 6.00% on 5-year compound-interest MYGAs, per AnnuityRateWatch carrier data, September 24, 2026. Rates vary by state, premium and carrier.
Why are PenFed CD rates lower than other credit unions right now?
PenFed prices its certificates almost flat: 3.20% for 1 year to 18 months, 3.40% for 2 to 4 years and 3.50% for 5 and 7 years (October 9, 2026). Other large credit unions are paying more on short and middle terms the same week: Navy Federal 4.10% on 18 months ($1,000 tier, October 3), NC SECU 4.30% on 18 and 24 months (October 1) and Suncoast 4.50% on 18 months. PenFed has not matched them, so for certificates it is a convenience choice for existing members, not a rate leader.
| Term | PenFed | Navy Federal | NC SECU | Suncoast |
|---|---|---|---|---|
| 12 months | 3.20% | 4.05% | 4.00% | 3.70% |
| 18 months | 3.20% | 4.10% | 4.30% | 4.50% |
| 24 months | 3.40% | 3.66% | 4.30% | 3.75% |
| 60 months | 3.50% | 3.85% | 4.00% | 3.75% |
How much does $10,000 earn in a PenFed certificate?
About $690 over 2 years at 3.40% APY, or about $320 in 1 year at 3.20% (APY accurate as of October 9, 2026), before tax. PenFed compounds certificate dividends daily, and you can choose to have dividends paid monthly or at maturity, or moved to a PenFed savings or checking account.
From my desk: Hans Goldstein, licensed insurance producer (NPN 20602398)
PenFed members who reach me usually have a certificate maturing and assume PenFed is still the high-rate credit union. With APYs accurate as of October 9, 2026 it is not: 3.50% (5 and 7 years) is the top certificate rate, and 6 to 18 months pay 2.70% to 3.20%. Before renewing I have them check one other credit union they already qualify for, because at 18 months the gap between PenFed at 3.20% and Navy Federal at 4.10% (October 3) on $100,000 is about $900 a year.
Example ($250,000, 5 years, before taxes): PenFed's 5-year at 3.50% grows to about $296,900; a 5-year MYGA at 5.80% (low end of the A-rated range, AnnuityRateWatch, September 24, 2026) grows to about $331,400. A MYGA rate is guaranteed by the issuing insurer and backed by its claims-paying ability, not the NCUA, and has surrender charges, so it is for money you will not need for the term. For a closer credit-union comparison see Navy Federal certificate rates and SECU certificate rates.
PenFed certificates: FAQ
What are PenFed CD rates today?
PenFed Money Market Certificates, APY accurate as of October 9, 2026: 6 months 2.70%, 1 year 3.20%, 15 months 3.20%, 18 months 3.20%, 2, 3 and 4 years 3.40%, and 5 and 7 years 3.50%. The minimum is $1,000.
What is the PenFed 5-year certificate rate?
3.50% APY, accurate as of October 9, 2026, the same as the 7-year. The 2, 3 and 4-year certificates pay 3.40%.
What do PenFed IRA certificates pay?
3.40% APY on the 5-year IRA certificate, accurate as of October 9, 2026 (penfed.org). PenFed says partial withdrawals after age 59½, including required minimum distributions, can be taken from IRA certificates without an early redemption penalty.
What is the PenFed early withdrawal penalty?
PenFed says penalties apply to early withdrawal of Money Market Certificates, requests must be in writing, and certificates funded by ACH cannot be withdrawn in the first 60 days. PenFed's disclosure says you forfeit all dividends if you redeem in the first year; after year one the penalty is 30% of what you would have earned by holding to maturity, capped at dividends earned.
Is PenFed NCUA insured?
Yes. Pentagon Federal Credit Union is federally insured by the National Credit Union Administration, up to $250,000 per member, per ownership category.
What does PenFed savings pay?
Premium Online Savings: 2.70% APY per PenFed's rate data effective September 1, 2026 (not rechecked October 3).
Does PenFed have a CD special right now?
No special term was listed on PenFed’s certificates page on October 3, 2026. The highest rates as of October 9, 2026 are the standard 5 and 7-year Money Market Certificates at 3.50% APY.
My take
At 3.40% to 3.50% for 2 to 7 years (October 9, 2026), PenFed certificates trail Navy Federal, NC SECU and the best online banks. Keep PenFed for its other products; for fixed-rate savings, compare the national CD market and, for five-year money, a MYGA.
Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398) and is not affiliated with Pentagon Federal Credit Union. He does not sell CDs. Rates are copied from the sources named, as of the dates shown; confirm the current rate before opening. MYGA figures are illustrations, not quotes.
Comparing PenFed certificates with a MYGA?
Talk to Hans Goldstein, a licensed independent insurance producer.
PenFed pays 3.50% for 5 years (APY accurate as of October 9, 2026). I can show you what a 5-year fixed annuity pays on the same money, tax-deferred.
Send your details. Within one business day you get a written side-by-side sized to your dollar amount and term, and a free 15-minute call if you want one.
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Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Disclosure
This review is based on the carrier's public product materials and rates as of the date shown above. CD and credit union certificate rates change frequently, typically weekly. Always confirm current APYs directly with the institution before opening. This is general education, not a personal recommendation or an offer of any product. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) and is not affiliated with PenFed Credit Union or any bank reviewed. No compensation has been received from any institution in connection with the publication of this review. MYGA comparison rates reflect top-of-market carrier offerings as of the publication date and are subject to availability, suitability, and underwriting. Annuities are long-term contracts with surrender charges and are not suitable for funds you may need before the end of the surrender period. NCUA and FDIC coverage details are subject to change; consult NCUA.gov or FDIC.gov for current rules.